Fineotex Chemicals shares surge 16% ahead of board meet for first bonus, stock split in 10 years

Shares of Fineotex Chemicals Ltd. surged as much as 16% on Thursday, September 25, after the company announced that its board will meet to consider a bonus issue of shares and a stock split.

In an exchange filing after market closing hours on Wednesday, the company said that the board will meet on Saturday, September 27, to consider these proposals.

Along with these proposals, the board will also be considering a dividend payout for shareholders.

This will be the first instance after 10 years that Fineotex Chemicals will be considering a bonus issue and a stock split for its shareholders.

Back in 2015, Fineotex Chemicals had announced a 1:1 bonus issue, rewarding shareholders with one bonus share for every one share held. Additionally, it also announced that it will be dividing one equity share of face value of ₹10 into five equity shares of face value of ₹2 each.

It is likely that the stock split will be in the 1:1 ratio, as the share of ₹2 each can only be split into two shares of ₹1 each.

Companies generally carry out a stock split to make it easier for shareholders to buy or sell their shares, as it increases the liquidity in the stock. A stock split divides a company's stock into more shares, lowering the price and increasing the number of shares available to trade.

Shares of Fineotex Chemicals are now trading 16% higher at ₹269.25. The stock has been an underperformer in 2025 so far, declining 22%.